NAO measurements of tax losses
Reckon was retained by the National Audit Office to assist with its audits of the value for money of tax collection and the reasonableness of budget assumptions about future tax revenues.
The work included:
- A study in 2005-2006 on whether recent deterioration in HM Revenue & Customs' management of VAT debt was due to external factors beyond the control of HMRC. Estimates of the contribution of these external factors were obtained by using panel data on debt to English local authorities in relation to non-domestic rates.
- Advice on the assumptions underpinning HM Treasury/HMRC estimates of revenues from excise duties, in particular assumptions about tax losses due to smuggling. This work was undertaken for the budget reports in Spring 2005 (hand rolled tobacco), Spring 2006 (cigarettes) and Spring 2007 (tobacco and alcohol).
Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.